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UBS reiterated a "buy" rating for Apple Inc (AAPL) - Get Apple Inc. Report Tuesday, citing the possibility of a "pig in a python" scenario as sales of a new iPhone model and upgrades from models sold in 2015 are set to surge, CNBC reported.

UBS analyst Steven Milunovich expects a rush in iPhone 6 owners upgrading to newer models next year, leading to a "supercycle" and bulge in buying in 2018 with some growth flowing through to 2019.

Milunovich set a price target of $170 for Apple, implying upside of about 12% from the stock's Monday closing price.

Though UBS remains bullish on Apple, they noted the possibility of a delay in iPhone 8 production, possibly into November.

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The company's August 1 earnings report will likely hint at a delay if there is one, UBS said. "A guide below $49 billion likely means a late release of the LCD models or a price cut."

Apple stock traded up 0.5% to $152.78 by Tuesday's close.

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